TSX:TVK

Stock Analysis Report

TerraVest Industries

Executive Summary

TerraVest Industries Inc., together with its subsidiaries, manufactures and sells goods and services to energy, agriculture, mining, and transportation markets in Canada and the United States.

Snowflake

Fundamentals

Solid track record with mediocre balance sheet.

Share Price & News

How has TerraVest Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.2%

TVK

0.6%

CA Energy Services

0.3%

CA Market


1 Year Return

14.9%

TVK

-36.8%

CA Energy Services

0.1%

CA Market

Return vs Industry: TVK exceeded the Canadian Energy Services industry which returned -36.8% over the past year.

Return vs Market: TVK exceeded the Canadian Market which returned 0.1% over the past year.


Shareholder returns

TVKIndustryMarket
7 Day-2.2%0.6%0.3%
30 Day-5.0%-12.9%-2.5%
90 Day-4.2%-16.5%-1.4%
1 Year18.8%14.9%-35.0%-36.8%3.6%0.1%
3 Year75.3%56.1%-41.8%-46.1%14.3%4.1%
5 Year148.2%94.8%-69.0%-72.4%25.0%6.9%

Price Volatility Vs. Market

How volatile is TerraVest Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TerraVest Industries undervalued compared to its fair value and its price relative to the market?

8.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TVK (CA$12.41) is trading above our estimate of fair value (CA$4.49)

Significantly Undervalued: TVK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TVK is good value based on its PE Ratio (8.8x) compared to the Energy Services industry average (16.1x).

PE vs Market: TVK is good value based on its PE Ratio (8.8x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate TVK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TVK is overvalued based on its PB Ratio (2.3x) compared to the CA Energy Services industry average (0.8x).


Next Steps

Future Growth

How is TerraVest Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TVK's earnings are forecast to decline over the next 3 years (-11% per year).

Earnings vs Market: TVK's earnings are forecast to decline over the next 3 years (-11% per year).

High Growth Earnings: TVK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if TVK's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if TVK's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if TVK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has TerraVest Industries performed over the past 5 years?

14.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TVK's earnings have grown by 14.4% per year over the past 5 years.

Accelerating Growth: TVK's earnings growth over the past year (95.1%) exceeds its 5-year average (14.4% per year).

Earnings vs Industry: TVK earnings growth over the past year (95.1%) exceeded the Energy Services industry 15.8%.


Return on Equity

High ROE: Whilst TVK's Return on Equity (25.88%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: TVK has a higher Return on Assets than the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: TVK has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TerraVest Industries's financial position?


Financial Position Analysis

Short Term Liabilities: TVK's short term assets (CA$143.8M) exceeds its short term liabilities (CA$45.7M)

Long Term Liabilities: TVK's short term assets (143.8M) exceeds its long term liabilities (116.5M)


Debt to Equity History and Analysis

Debt Level: TVK's debt to equity ratio (117.9%) is considered high

Reducing Debt: TVK's debt to equity ratio has increased from 77.7% to 117.9% over the past 5 years.

Debt Coverage: TVK's debt is not well covered by operating cash flow (10.2%).

Interest Coverage: TVK's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet

Inventory Level: TVK has a high level of physical assets or inventory.

Debt Coverage by Assets: TVK's debt is covered by short term assets (assets are 1.287970x debt).


Next Steps

Dividend

What is TerraVest Industries's current dividend yield, its reliability and sustainability?

3.22%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%2.0%markettop25%6.0%industryaverage5.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TVK's dividend (3.22%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: TVK's dividend (3.22%) is low compared to the top 25% of dividend payers in the Canadian market (5.99%).

Stable Dividend: Whilst dividend payments have been stable, TVK has been paying a dividend for less than 10 years.

Growing Dividend: TVK's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.2%), TVK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of TerraVest Industries's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Dustin Haw 0

2.7yrs

Tenure

CA$200,617

Compensation

Dr. Dustin Haw, Ph.D., has been Chief Executive Officer and President TerraVest Industries Inc. since February 22, 2017. Dr. Haw served as the Vice President of Investments at Clarke Inc. from September 18 ...


CEO Compensation Analysis

Compensation vs. Market: Dustin's total compensation ($USD152.10K) is below average for companies of similar size in the Canadian market ($USD684.13K).

Compensation vs Earnings: Dustin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

Experienced Management: TVK's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

56yo

Average Age

Experienced Board: TVK's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: TVK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$3,26508 Oct 19
Marilyn Boucher
EntityIndividual
Role
Co-Chief Financial Officer
Chief Financial Officer
Shares250
Max PriceCA$13.06
SellCA$260,00026 Sep 19
Michael MacBean
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceCA$13.00
BuyCA$2,204,45320 Sep 19
Mitchell Gilbert
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer
Shares170,228
Max PriceCA$12.95
BuyCA$13,64004 Sep 19
Blair Cook
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,100
Max PriceCA$12.40
BuyCA$8,93208 Apr 19
Marilyn Boucher
EntityIndividual
Role
Co-Chief Financial Officer
Chief Financial Officer
Shares700
Max PriceCA$12.76
BuyCA$458,88927 Mar 19
Dustin Haw
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares34,870
Max PriceCA$13.16
BuyCA$24,52021 Mar 19
Michael MacBean
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceCA$12.26
BuyCA$119,70608 Mar 19
Michael MacBean
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,750
Max PriceCA$12.28
SellCA$165,47305 Feb 19
Gregory Fletcher
EntityIndividual
Shares15,181
Max PriceCA$10.90
BuyCA$8,28004 Jan 19
Blair Cook
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares800
Max PriceCA$10.35

Ownership Breakdown


Management Team

  • Michael Gering

    President of Diamond Energy Services Limited Partnership

    • Tenure: 0yrs
    • Compensation: CA$233.45k
  • Peter Eng

    Secretary and Vice President of Finance - TerraVest Industries

    • Tenure: 0yrs
  • Charles Pellerin

    Executive Chairman & Interim CFO

    • Tenure: 5.3yrs
    • Compensation: CA$150.00k
  • Dustin Haw

    CEO, President & Director

    • Tenure: 2.7yrs
    • Compensation: CA$200.62k
  • Pierre Fournier

    President of Gestion Jerico Inc and Chief Operating Officer of Gestion Jerico Inc

    • Tenure: 0yrs
    • Compensation: CA$250.17k
  • Mitch Gilbert

    Chief Investment Officer

    • Tenure: 6.1yrs
    • Compensation: CA$263.41k
  • Mitch Debelser

    President of Oil & Gas Fabrication Division

    • Tenure: 3.6yrs
  • Marilyn Boucher

    Chief Financial Officer

    • Tenure: 0.2yrs

Board Members

  • Rocco Rossi (56yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: CA$24.00k
  • George Armoyan (59yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: CA$27.50k
  • Dale Laniuk

    Non-Management Director

    • Tenure: 15.4yrs
    • Compensation: CA$24.00k
  • Mick MacBean (51yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: CA$24.00k
  • Blair Cook

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: CA$29.00k
  • Charles Pellerin

    Executive Chairman & Interim CFO

    • Tenure: 5.3yrs
    • Compensation: CA$150.00k
  • Dustin Haw

    CEO, President & Director

    • Tenure: 2.7yrs
    • Compensation: CA$200.62k

Company Information

TerraVest Industries Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TerraVest Industries Inc.
  • Ticker: TVK
  • Exchange: TSX
  • Founded: 2004
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$214.905m
  • Shares outstanding: 17.32m
  • Website: https://www.terravestindustries.com

Number of Employees


Location

  • TerraVest Industries Inc.
  • 4901 Bruce Road
  • Vegreville
  • Alberta
  • T9C 1C3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TVKTSX (The Toronto Stock Exchange)YesNew Common SharesCACADDec 2012
TRRV.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDDec 2012
4TVBST (Boerse-Stuttgart)YesNew Common SharesDEEURDec 2012

Biography

TerraVest Industries Inc., together with its subsidiaries, manufactures and sells goods and services to energy, agriculture, mining, and transportation markets in Canada and the United States. It operates  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:20
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.